The forecast for copper demand in Japan in 2016 has been revised down

On October 5, the Japan Wire and Cable Chamber of Commerce lowered its 2016 copper demand forecast
.
It is estimated that the total amount of copper cable in 2016 will reach 688,000 tons, a year-on-year decrease of 1.
6%.

The estimate released in March was 711,000 tons
.
In addition to the downward revision in the communications and automotive segments, the construction and electricity sales areas and automotive demand were all revised
.

From the perspective of various fields, in the field of communications, the demand for copper cables was 11,000 tons, a year-on-year decrease of 2.
7%.

However, investment in equipment in the field of communications has decreased, and the trend of replacing them with fiber-optic cables continues
.
In the power sector, the demand for copper cables was 55,000 tons, a year-on-year decrease of 2.
7%.

The initial estimate was 59,000 tonnes, a relative downward revision
.
The operating environment of power companies is becoming increasingly severe, and they will continue to control equipment investment
in the future.
A certain amount of adjustment
is expected.

In the field of power machinery, the demand for copper cable was 152,000 tons, an increase of 1.
5%
year-on-year.
The initial forecast was 156,000 tonnes, which was revised
downward.
In the heavy power sector, demand for new energy was firm, up
from the initial estimate.
In the field of home appliances, the consumption tax increase was postponed, and demand did not increase
as expected.

In the automotive sector, the demand for copper cable was 71,000 tons, an increase of 1.
1%
year-on-year.
Although the number of cars produced in Japan has not increased much, the number of cable equipment is large, and the proportion of ordinary cars has increased
.
Therefore, on the whole, the demand for copper cables still has a certain growth
.

In the field of construction power sales, the demand for copper cable was 330,000 tons, a year-on-year decrease of 2.
4%.

Less
than the estimated 345,000 tons.
Although there are expectations for the redevelopment of the Tokyo metropolitan area and the Tokyo Olympics, due to the shortage of manpower at the construction site, the demand for cables has reached a time
when it is not connected.
PV demand has passed its peak
.
In addition, the extension of the consumption tax increase also has a certain impact
.

In terms of other domestic demand, mainly for equipment investment, the demand for copper cable was 49,000 tons
.
That's a little
less than the estimated 50,000 tons.
In terms of private equipment investment, although there is a trend of recovery in copper cable demand in the future, it is not as much
as originally expected.
In terms of exports, the demand for copper cable was 17,000 tons, a year-on-year decrease of 22.
4%, down 2,000 tons
.
It is mainly affected
by the economic instability of oil-producing countries and developed countries.